MIRA
INFORM REPORT
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Report Date : |
04.10.2011 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE HOME STORE LIMITED (w.e.f. 25.01.2008) |
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Formerly Known As : |
FLAGSHIP RETAIL PRIVATE LIMITED |
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Registered Office : |
Reliance Corporate Park, Building No. 4, Ground Floor, C Wing,
Thane-Belapur Road, Ghansoli, Navi Mumbai-400701, Maharashtra |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
30.10.2007 |
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Com. Reg. No.: |
11-175510 |
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Capital
Investment / Paid-up Capital : |
Rs. 0.500 million |
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CIN No.: [Company
Identification No.] |
U51101MH2007PLC175510 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMF05108F |
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PAN No.: [Permanent
Account No.] |
AABCF1502G |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
The company is mainly engaged in ‘Organised Retail’ in India. All the
activities of the company revolved around this main business. |
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No. of Employees |
1000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B (28) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Reliance Group, country’s Premier industrial
house. Financial position of the company is moderate. There appears huge
accumulated losses recorded by the company. Profitability of the company is under
pressure. However, trade relations are reported as fair. Business is active.
Payments are reported to be usually correct. In view of strong promoters, the company can be considered normal for
business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
|
Name : |
Mr. Santosh Pandey |
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Designation : |
Finance Manager |
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Date : |
30.09.2011 |
LOCATIONS
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Registered Office : |
Reliance Corporate Park, Building No. 4, Ground Floor, C Wing,
Thane-Belapur Road, Ghansoli, Navi Mumbai-400701, Maharashtra, India |
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Tel. No.: |
91-22-44772916 |
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Fax No.: |
91-22-22785110 |
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E-Mail : |
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Website : |
DIRECTORS
As on : 04.08.2010
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Name : |
Mr. Bijay Kumar Sahoo |
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Designation : |
Director |
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Address : |
47A, 4th Floor, Hill Park AG, |
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Date of Birth/Age : |
08.05.1966 |
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Date of Appointment : |
07.01.2008 |
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Din No.: |
01931278 |
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Name : |
Mr. Madhvan Ganesan |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
07.09.1964 |
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Date of Appointment : |
06.12.2007 |
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Din No.: |
01674529 |
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Name : |
Mr. Raghu Pillai |
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Designation : |
Director |
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Address : |
Flat No. 6, 4th Floor, Shang Rila Apartments, 5 Orlur OLC,
Ott Road, Besant Nagar, Chennai-600090, Tamilnadu, India |
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Date of Birth/Age : |
03.07.1967 |
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Date of Appointment : |
06.12.2007 |
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Din No.: |
00179987 |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On : 04.08.2010
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Names of Shareholders |
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No. of Shares |
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Sudhakar Saraswatula of Jointly with Reliance Retail Limited |
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1 |
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Madhavan Ganesan of Jointly with Reliance Retail Limited |
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1 |
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Srinath Chakravarthy Raghunathan of Jointly with Reliance Retail
Limited |
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1 |
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Rajendra Madhav Kamath of Jointly with Reliance Retail Limited |
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1 |
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Subramaniam Venkatachalam of Jointly with Reliance Retail Limited |
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1 |
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Sridhar Kothandaraman of Jointly with Reliance Retail Limited |
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1 |
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Reliance Retail Limited, India |
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49994 |
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TOTAL |
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50000 |
* Beneficial Interest in the shares held by
Reliance Retail Limited
As On : 04.08.2010
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Category |
Percentage |
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Bodies corporate |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The company is mainly engaged in ‘Organised Retail’ in India. All the
activities of the company revolved around this main business. |
GENERAL INFORMATION
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No. of Employees : |
1000 (Approximately) |
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Chaturvedi and Shah Chartered Accountant |
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Address : |
714-715, Tulsiani Chambers, 212, Nariman Point, Mumbai-400021, |
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Holding Company : |
Reliance Retail Limited U17120MH1998PLC114010 |
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Ultimate Holding Company : |
Reliance Industries Limited |
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Fellow Subsidiaries : |
·
Reliance Corporate IT Park Limited ·
Reliance Digital Media Limited ·
Reliance Digital Retail Limited ·
Reliance Fresh Limited ·
Reliance Hypermart Limited ·
Reliance Infosolutions Private Limited ·
Reliance Infrastructure Management Services
Limited ·
Reliance Leisures Limited ·
Reliance Loyalty and Analytics Limited ·
Reliance Supply Chain Solutions Limited ·
Reliance Wellness Limited ·
Retail Concepts and Services (India) Limited ·
Strategic Manpower Solutions Limited |
CAPITAL STRUCTURE
As on : 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs.10/- each |
Rs.0.500 Million |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs.10/- each |
Rs.0.500 Million |
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Note: All the above 50000 equity shares of Rs.10 each fully paid up are held by Reliance Retail Limited, the holding company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
0.500 |
0.500 |
0.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
(134.971) |
(45.430) |
(0.915) |
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NETWORTH |
(134.471) |
(44.930) |
(0.415) |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.488 |
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2] Unsecured Loans |
711.080 |
545.609 |
103.318 |
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TOTAL BORROWING |
711.080 |
545.609 |
103.806 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
576.609 |
500.679 |
103.391 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
92.736 |
56.456 |
1.136 |
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Capital work-in-progress |
233.185 |
198.316 |
42.113 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
66.300 |
19.644 |
0.317 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
166.735
|
216.189 |
149.256 |
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Sundry Debtors |
36.860
|
62.352 |
161.316 |
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Cash & Bank Balances |
0.913
|
6.073 |
0.585 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
81.285
|
122.871 |
16.720 |
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Total
Current Assets |
285.793
|
407.485 |
327.877 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities |
0.000
|
0.000 |
0.000 |
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Sundry creditors |
98.604
|
170.450 |
260.333 |
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Provisions |
2.801
|
10.772 |
7.719 |
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Total
Current Liabilities |
101.405
|
181.222 |
268.052 |
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Net Current Assets |
184.388
|
226.263 |
59.825 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
576.609 |
500.679 |
103.391 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
|
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|
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Turnover |
607.842 |
1133.030 |
220.058 |
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Other Income |
0.911 |
1.331 |
0.000 |
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TOTAL (A) |
608.753 |
1134.361 |
220.058 |
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Less |
EXPENSES |
|
|
|
|
|
|
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Purchases |
506.754 |
1191.997 |
361.849 |
|
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|
Operating and Other Expenses |
180.357 |
69.697 |
8.397 |
|
|
|
Increase / Decrease in Stock |
50.897 |
(66.240) |
(149.256) |
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|
|
TOTAL (B) |
738.008 |
1195.454 |
220.990 |
|
|
|
|
|
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Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(129.255) |
(61.093) |
(0.932) |
|
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|
|
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Less |
FINANCIAL
EXPENSES (D) |
0.016 |
0.033 |
0.000 |
|
|
|
|
|
|
|
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|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(129.271) |
(61.126) |
(0.932) |
|
|
|
|
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|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
6.926 |
1.655 |
0.000 |
|
|
|
|
|
|
|
|
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|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(136.197) |
(62.781) |
(0.932) |
|
|
|
|
|
|
|
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|
Less |
TAX (I) |
46.656 |
18.266 |
0.017 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-I) (J) |
(89.541) |
(44.515) |
(0.915) |
|
|
|
|
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|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(45.430) |
(0.914) |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(134.971) |
(45.430) |
(0.914) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Traded Goods |
76.211 |
103.634 |
0.000 |
|
|
|
Capital Goods |
0.112 |
3.976 |
0.000 |
|
|
TOTAL IMPORTS |
76.323 |
107.610 |
0.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(1790.83) |
(890.31) |
(26.54) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(14.70)
|
(3.92) |
(0.42) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(22.37)
|
(5.53) |
(0.42) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(35.98)
|
(13.53) |
0.28 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.01)
|
(1.39) |
(2.24) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(6.04)
|
(16.17) |
(896.04) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.81
|
2.24 |
1.22 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS :
(Rs
In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2009 |
|
Micro Enterprises and Small Enterprises |
0.000 |
0.000 |
0.000 |
|
Others |
98.604
|
170.450 |
260.333 |
|
|
|
|
|
|
Total |
98.604
|
170.450 |
260.333 |
NOTE :
The Registered office address was changed from 2nd Floor, Chitrakoot,
Shreeram Mills Premise, Ganpatrao Kadam Marg, Worli, Mumbai, Maharashtra, India
to present w.e.f. 01.09.2008.
CHANGE OF NAME
The name of the Company has been changed from Flagship Retail Private Limited to Reliance Home Store Private Limited with effect from November 29, 2007 and subsequently changed to Reliance Home Store Limited with effect from January 25, 2008.
CHANGE OF STATUS OF
THE COMPANY
The status of the Company has been changed from
private to public with effect from January 25, 2008.
OPERATIONAL REVIEW
OPERATIONAL AND FINANCIAL REVIEW
During the year
the company has expanded its retail presence by launching more Reliance Living
Furnishings Reliance Living Homewave and Reliance Home Kitchen Stores across
various cities in India. The Company's private label products which are of
superior quality but priced at affordable prices are hugely appreciated by its
discerning customers. The Company is also providing consultancy services
to corporate I SME clients for office furnishing.
The Company has
incurred a loss of Rs. 89.541millions for the financial year ended March
31, 2010. With the optimization of resources
and further scaling up of retail store operations, the Company is
confident of posting better results in the future.
CONTINGENT LIABILITIES (AS ON : 31.03.2010)
(Rs. In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
|
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|
|
|
Outstanding guarantee furnished to banks and Financial Institutions
including in respect of Letter of Credit
|
8.242 |
3.607 |
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FIXED ASSETS :
v Equipments
v Vehicles
v Plant and Machinery
v Electrical Installation
v Furniture and Fixtures
v Leasehold Improvement
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 49.42 |
|
|
1 |
Rs. 76.72 |
|
Euro |
1 |
Rs. 65.84 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
28 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.